All Forum Posts by: Brandon Shewbridge

@John Thedford - my intent is not to use HMLs for any long term timeline.  I was just looking at some properties that need a lot of work and wont qualify for conventional financing until they are rehabbed. Once rehabbed I would look to flip or refi and rent.

20% is no problem, but I'm assuming that thats not all you're considering...

I have some capital built up, but I'm going to need some short term financing to do what I want to do.  My question to HMLs is: what are you looking for from a new guy that wants to borrow $100K?  In other words:  what do you want to see from a borrower regarding assets, income, credit history, FICO, deal details, note position, etc.

If I show up asking for money, I want to be prepared so I don't waste your time or mine.

Ask when they bought the house.  That should give you a general idea of how long they have been there and what type of equity position they are in. If they bought in 06-07, there may not be much.  If they've been there 20 years or inherited from their parents, etc. then that is better.

@Russell Brazil - there are no regular $38K foreclosure areas in Va Beach.  Housing prices in Va Beach are consistently higher than surrounding cities - even in the rough areas.  If the place was totally trashed or burned down - maybe.  Portsmouth has foreclosures in that range consistently.

Thanks to all.  I appreciate the feedback.

For clarification, I could put down 20% on a 100k deal and still have money for rehab.

My ultimate goal is to buy and hold.  I'm trying to figure out an entry point to get the most bang for my buck with cash on hand.  Suggestions on where could I use that cash elsewhere to build up more cash so that I can make a cash offer on a higher cost deal?

Wholesalers - would you wholesale to a non-cash buyer?  

It seems like most wholesale deals are sold to cash buyers. I'm asking before I approach a local wholesaler looking for a BRRRR deal (only to be shot down). I'd much rather go in with financing than look for hard money for my 1st deal. (Who would lend hard money to a 1st timer anyway?) $30K properties in my area are teardowns or in areas that I wouldn't feel safe in. I have some cash on hand, but not the $100K+ that it would take to get what I am looking for in my area. In this scenario my goal would be to buy with minimal cash down using financing and use some of that cash balance to pay for the rehab.

If you buy it, you own it and therefore are responsible for paying the taxes and insurance.  If the owners opt to use a loan servicing company, then that company may collect and pay them on your behalf.  IMO If the owners are smart, they'll do that to avoid losing any interest to a potential tax lien if you don't pay taxes or loss if you don't insure.

Thanks Jeff.  At this time I'm not certain that a partnership opportunity is there or if it is just an investment opportunity.  I am looking to get out of stocks and into real estate because I have more control.  In this case I may not have as much as I would like so I would want to make sure that I conduct thorough due dilligence as I would when picking a stock.  What type of info should I be asking about (or for) to get a better idea of his track record.